China Abrasive Materials Weekly Price (17-23 May): Raw material costs continue to rise
This week, driven by the increase in the price of raw material alumina, and white fused alumina manufacturers generally do not have inventory, most of the white fused alumina manufacturers in raised their prices by about RMB 50/ton from the beginning of last week. Due to the strong willingness of manufacturers to raise prices, it is expected that the price of white fused alumina in China may maintain an upward trend in the next week.
Since April, due to factors such as central environmental supervision and restrictions on bauxite mining, many brown fused alumina factories in Henan and Guizhou Province have stopped or reduced production. Affected by this, the current spot supply of brown fused alumina is in a trend of tightening. The destocking days of companies have significantly decreased year-on-year, and companies have no inventory pressure.
In addition, due to the increase in the price of white fused alumina this week, most brown fused alumina manufacturers took advantage of this opportunity to follow up, and the price increase of brown fused alumina was also around RMB 50/ton. It is expected that in the coming week, brown fused alumina prices may show a strong upward trend.
Since May, the price of anthracite has continued to rise, and the increase has reached about RMB 200/ton. Affected by this, most black silicon carbide manufacturers have raised prices by about RMB 150/ton. As most manufacturers currently do not have inventory pressure and are willing to further increase prices, it is expected that in the coming week, the price of black silicon carbide may continue to show an upward trend.
This week, affected by the increase in the price of green silicon carbide crude, most of the green silicon carbide manufacturers have successively increased their prices. It is expected that in the coming week, if there is no significant improvement in downstream demand, the green silicon carbide price increase may still face greater resistance, and the market may enter a short-term wait-and-see state.